World demand for oil, gas and coal in the 21
st
century will depend on two contrary
forces. Firstly, there is the possible reduction in demand by the countries in the
Organisation for Economic Co-operation and Development (OECD) caused by
structural changes, saturated markets, ageing populations and increasing efficiency.
Such efficiency gains are driven bycompetition, concernsfor energysecurity and
environmental measures. Action to meet Kyoto targets, set in a summit on global
warming in Kyoto, Japan in December 1997, will put a cost on carbon emissions –
either by taxation or bytrading